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Elan Corporation, plc (NYSE: ELN) today announced the expected timetable
of the separation of a substantial portion of its drug discovery
business (the Prothena Business) into a new independent, publicly traded
company, Prothena Corporation plc (Prothena). The separation will be
effected pursuant to a demerger under Irish law.

Under the demerger, Elan will transfer the Prothena Business to Prothena
in exchange for Prothena issuing directly to the holders of Elan
ordinary shares and American Depositary Shares (ADSs), on a pro rata basis,
Prothena ordinary shares representing 99.99% of Prothena’s outstanding
shares. Immediately after the demerger (and conditional on prior
completion of the demerger) a wholly owned subsidiary of Elan will
subscribe $26 million and receive Prothena shares representing 18% of
the total outstanding ordinary shares of Prothena (as calculated
immediately following the subscription by Elan). The remaining 0.01% of
Prothena’s outstanding shares, which were issued to the original
incorporators of Prothena, will then be redeemed and cancelled.
Accordingly, after completion of the transaction, Elan shareholders will
directly and indirectly own 100% of the Prothena Business by virtue of
their direct ownership of 82% of Prothena’s outstanding shares and
indirect ownership of 18% of Prothena’s outstanding shares.
Additionally, in connection with the reorganization of the Prothena
Business which precedes the demerger, Elan is making a cash investment
of $99 million in the subsidiaries holding the Prothena Business.

Elan shareholders approved a resolution in respect of the demerger at
the Extraordinary General Meeting of Elan held in Dublin, Ireland on
December 12, 2012. The occurrence of the distribution of Prothena
ordinary shares in the demerger and the expected timetable set forth
below is subject to, among other conditions to the demerger, the
Registration Statement on Form 10 previously filed by Prothena with the
Securities and Exchange Commission (SEC) in connection with the demerger
having been declared effective by the SEC.

Under the terms of the demerger, Elan shareholders on the register as of
11:59 p.m. (Dublin time) on December 14, 2012, the record date, will receive
1 Prothena ordinary share for every 41 Elan ordinary shares or ADSs held.

Fractional entitlements to Prothena ordinary shares will not be
allocated to Elan shareholders in the demerger, but will instead be
aggregated and sold in the open market at prevailing market prices, with
the aggregate net cash proceeds (after deduction of any required costs
and taxes) to be distributed on a pro rata basis to each Elan
shareholder who would otherwise have been entitled to receive a
fractional share under the demerger.

Application has been made for the Prothena ordinary shares to be issued
in the demerger to be admitted to trading on the NASDAQ Global Market.
It is anticipated that Prothena ordinary shares will begin trading on a
"when issued” basis on the NASDAQ Global Market on December 18, 2012 and
"regular way” on the NASDAQ Global Market on December 21, 2012, the
first business day immediately following the distribution date, under
the symbol "PRTA.” There are currently 594,374,093 shares in issue in
Elan. Based on this issued share capital, and following the subscription
by Elan for Prothena ordinary shares as described above, it is expected
that there will be approximately 17.7 million Prothena ordinary shares
in issue immediately following consummation of the demerger and the Elan
subscription.

Further detail in relation to the timetable for completion of the
demerger is set out below:

Event

Time and Date

Record Date in respect of the demerger

11.59 p.m. (Dublin time) on December 14, 2012

Publication of Information Statement in respect of the demerger and
issue of Information Statement to Elan shareholders as of the record
date

Elan ordinary shares trading on the ISE marked ‘ex’ the entitlement
to the Prothena ordinary shares

8.00 a.m. (Dublin time) on December 21, 2012

Elan ADSs trading on the NYSE marked ‘ex’ the entitlement to the
Prothena Shares

8.00 a.m. (New York time) on December 21, 2012

DTC participants accounts credited with Prothena ordinary shares

9.30 a.m. (New York time) on December 21, 2012

Admission of the Prothena ordinary shares to trading on the NASDAQ
Global Market

9.30 a.m. (New York time) on December 21, 2012

Share certificates issued in respect of Prothena ordinary shares to
relevant holders of Elan shares as of the record date

by December 31, 2012

Further information in relation to the mechanics of the distribution of
Prothena ordinary shares is contained in Section 3 of Part 5 of the
Circular to Elan shareholders dated November 12, 2012 and is also
contained in the Information Statement, which is attached as an exhibit
to the Registration Statement on Form 10 previously filed by Prothena
Corporation plc with the SEC.

About Elan

Elan Corporation, plc (NYSE: ELN) is a neuroscience-based biotechnology
company committed to making a difference in the lives of patients and
their families by dedicating itself to bringing innovations in science
to fill significant unmet medical needs that continue to exist around
the world. Elan shares trade on the New York and Irish Stock Exchanges.
For additional information about the Company, please visit www.elan.com.

Forward-Looking Statements

This press release contains forward-looking statements about Elan’s
financial condition, results of operations, business prospects and
products in research and development that involve substantial risks and
uncertainties.You can identify these statements by the fact that
they use words such as "anticipate”, "estimate”, "project”, "target”,
"intend”, "plan”, "will”, "believe”, "expect” and other words and terms
of similar meaning in connection with any discussion of future operating
or financial performance or events.Among the factors that could
cause actual results to differ materially from those described or
projected herein are the following: some or all of the necessary
preconditions to the proposed demerger are not fulfilled and the
demerger is either delayed or cancelled; if the demerger does occur the
anticipated benefits of the demerger do fail to come to fruition,the
potential of Tysabri, which may be severely constrained by increases in
the incidence of serious adverse events (including death) associated
with Tysabri (in particular, by increases in the incidence rate for
cases of PML), or by competition from existing or new therapies (in
particular, oral therapies), and the potential for the successful
discovery, development and commercialization of additional products
especially given the proposed separation of the Prothena business which
will leave us with no material pre-clinical research or development
programs or capabilities; Elan’s ability to maintain sufficient cash,
liquid resources, and investments and other assets capable of being
monetized to meet its liquidity requirements; the success of our
development activities, and research and development activities in which
we retain an interest, including, in particular, the impact of the
announced discontinuation of the development of bapineuzumab intravenous
in mild to moderate Alzheimer’s disease; whether our continuing
obligations to fund Janssen AI will be reduced; and the speed with which
regulatory authorizations and product launches may be achieved;whether
the charges we still expect to incur as the result of the restructuring
of our business turn out to be greater than we expect; we own
approximately six percent of Alkermes plc and our shares are subject to
legal and contractual transfer restrictions; failure to comply with
anti-kickback, bribery and false claims laws in the United States,
Europe and elsewhere;difficulties or delays in manufacturing and
supply of Tysabri; trade buying patterns; the impact of potential
biosimilar competition, whether restrictive covenants in Elan’s debt
obligations will adversely affect Elan; the trend towards managed care
and health care cost containment, including Medicare and Medicaid;
legislation and other developments affecting pharmaceutical pricing and
reimbursement (including, in particular, the dispute in Italy with
respect to Tysabri sales), both domestically and internationally;
failure to comply with Elan’s payment obligations under Medicaid and
other governmental programs; exposure to product liability (including,
in particular, with respect to Tysabri) and other types of lawsuits and
legal defense costs and the risks of adverse decisions or settlements
related to product liability, patent protection, securities class
actions, governmental investigations and other legal proceedings; Elan’s
ability to protect its patents and other intellectual property; claims
and concerns that may arise regarding the safety or efficacy of Elan’s
products or product candidates; interest rate and foreign currency
exchange rate fluctuations and the risk of a partial or total collapse
of the euro; governmental laws and regulations affecting domestic and
foreign operations, including tax obligations; general changes in United
States and International generally accepted accounting principles;
growth in costs and expenses; and the impact of acquisitions,
divestitures, restructurings, product withdrawals and other unusual
items. A further list and description of these risks, uncertainties and
other matters can be found in Elan’s Annual Report on Form 20-F for the
fiscal year ended December 31, 2011, and in its Reports of Foreign
Issuer on Form 6-K, and in Prothena Corporation’s Form 10, each as filed
with the United States Securities and Exchange Commission. Elan assumes
no obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise.